Still, Auth said gasoline and crude oil prices are likely to retreat, easing pressure on consumers, and minimizing the overall economic impact of the disaster and allowing modest gains for the stock market.
"Assuming the pace of consumer and business spending slows only moderately, we believe the current environment continues to be modestly equity-friendly," he said.
Bonds fell as investors dismissed some of the early concerns about a severe economic slowdown. The yield on the 10-year US Treasury bond dropped rose to 4.123 percent from 4.029 percent a week earlier and that on the 30-year bond increased to 4.402 percent from 4.289 percent. Bond yields and prices move in opposite directions.
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